In Defense of Trickle Down Economics

Lately, the phrase, “Spending our way out of recession” has been repeated over and over. I honestly never understood it, and it does not seem to be having concrete benefits.

What this country needs is good ol’ trickle down economics.

Trickle-Down Economics is, in my opinion, one of the most assailed economic thought processes in the country right now. Right next to Socialism, that is. To be honest, I never quite understood the criticism and in fact, I believe trickle-down economics is what this country needs for the economic recovery.

Ronald Reagan used trickle down economics in order to bring the United States out of the recession. Basically, the theory believes that if the higher tax bracket of wealth-owners is subjected to a smaller tax percentage, it will increase the amount of jobs and the income of employees.

There is one basic principle behind this theory: the fact that the wealthiest people in this nation are the ones who own the businesses, and thus control the number of jobs in the private industry. When times are tough, businesses need to cut costs, and more often than not, this occurs with layoffs. It only makes sense to cut taxes on businesses in order to maintain the upkeep.

However, there are criticisms of supply-side economics, as this system is often called. One criticism is that it’s basically “giving money to those who don’t need it.” I take offense to this criticism because it is based on one flaw – that the people who have the money didn’t have it in the first place. This criticism assumes that other people are having their money taken away from them and given to richer people.

That is not the case. People should be rewarded for their hard work – not be forced to give it to Uncle Sam.

It is my bet that trickle down economics would be able to pull us out of this recession much quicker than “spending out way” out of it with money we simply do not have. Let the private industry pull us out of the recession the natural way – any public driving force will simply cause more problems.

If you disagree with my analysis, please let me know! Comment away!

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Chris Buchheit

Chris Buchheit was born under the hot Floridian sun during some year in the 1980s. There he studied school matters until moving to North Carolina in 1999. Possibly due to the fact that his mom had enough of him being inside all the time, he quickly got involved in community affairs via the Boy Scouts of America, where he learned the values of citizenship, morality, duty to God and country, and that the biggest kids get to boss around the smaller ones. Chris attained the rank of Eagle Scout in 2004, and still values the rank as one of his proudest achievements. Beginning in 2006, Chris began attending the University of North Carolina at Chapel Hill, where he quickly learned the value of basketball and poplar trees. Since attending UNC, Chris has been double majoring in Asian Studies, with a concentration in Chinese, and Political Science. When he isn’t slaving over his honors thesis, looking up a bunch of Chinese Characters, volunteering, or mindlessly browsing the same websites over and over, Chris enjoys writing short stories and novels. Much to his roommates’ annoyance, he also spends his free time learning to play the guitar. Above all else, though, Chris values God, his family, and his friends. For the future, Chris plans to apply to Georgetown to further his studies in Political Science, hopefully with a concentration on China. Pending acceptance into Georgetown, Chris would like to study while gaining professional experience in a government job in Washington DC.

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